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JD Sports to update on US expansion after billion-dollar Hibbett deal

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JD Sports will give investors a glimpse of its growing dominance in the US after gaining nearly 1,200 stores after a takeover of rival sports brand Hibbett.

The London-listed fashion retailer, which sells brands from Nike and Adidas to The North Face and Columbia, will announce its half-year financial results on Wednesday.

In August it reported a 2.4% increase in sales between May and July, compared like for like with the same period a year ago.

Its sales performance has been driven in recent months by growth in North America and Europe, offsetting weaker activity in the UK where online shopping and clothing sales have been more subdued.

Aarin Chiekrie, an equity analyst for Hargreaves Lansdown, said JD had “got back on the front foot” over the latest quarter “after a challenging period of volatile conditions and guidance downgrades”.

Sportswear giant JD Sports revealed its pre-tax profits have tumbled as bosses cautioned over inflation and supply chain disruption affecting trading over the rest of the year (JD Sports/ PA)

Investors will be looking for an update on the group’s more recent trading and any signs that consumer sentiment is picking up in the UK.

JD, dubbed the “king of trainers”, completed the acquisition of sports retailer Hibbett in July in a deal worth 1.1 billion US dollars (£830 million).

After adding some 1,180 of its stores to its own estate, and opening another 85 JD stores over 2024, the company now runs about 4,500 shops across the globe.

Its share price has also been boosted by more than a third over the past six months as the FTSE 100-listed firm races ahead with its growth plans.

JD said the Hibbett takeover would add “scale and presence” in the US and strengthen its brand relationships in the world’s largest sportswear market.

Despite the positive momentum of structural growth opportunities in the sports apparel market, JD Sports remains cautious about the outlook for the rest of the year

Aarin Chiekrie, equity analyst at Hargreaves Lansdown

Mr Chiekrie said investors will be “keen to hear how the integration is progressing” when it updates on its half-year results.

“Despite the positive momentum of structural growth opportunities in the sports apparel market, JD Sports remains cautious about the outlook for the rest of the year,” Mr Chiekrie added.

The company forecasts that its pre-tax profits for the year could tip above the £1 billion mark this year, even before taking into account the impact of Hibbett.

JD has been racing towards the earnings milestone, having fallen short of it in 2023 after a more challenging sales market, particularly for clothes.

Regis Schultz, JD’s chief executive, said challenging conditions persisted into 2024 with consumers affected by tougher economic conditions in key markets around the world.

But he maintained that the retailer’s customers, who are typically younger, were continuing to prioritise spending on trainers and athleisure brands.